Number of Constructions

1. Number of constructions increased

In 2021, the total number of constructions from approved building permits was recorded at 162,619, indicating an annual expansion of 31.4 percent from the 123,783 total number of constructions in 2020. The number of constructions declined at an annual rate of -28.5 percent in 2020. (Tables A and 1)

2. Residential buildings had the highest number of constructions

By type of construction, residential buildings reported the highest number of constructions in 2021, which totaled to 115,772 or 71.2 percent of the total number of constructions during the year. This indicates an increase of 32.4 percent from the previous year’s count of 87,419 constructions. Majority (85.1%) of the residential constructions were single-type houses.

Meanwhile, the non-residential type of construction was the second highest in terms of number of constructions at 25,550 or 15.7 percent of the total number of constructions in 2021. This type of construction increased in number in 2021 at an annual rate of 31.7 percent. Most (67.7%) of the non-residential constructions were commercial buildings. (Figure 1, and Tables A and 1)

Addition, which refers to any new construction that increases the height or area of an existing building, and alteration and repair of existing structures contributed 2.8 percent and 10.3 percent to the total number of constructions in 2021, respectively. Compared with the number of constructions in 2020, addition to existing structures, and alteration and repair recorded annual growth rates of 42.7 percent and 21.7 percent, respectively. (Tables A and 1)

3. Number of constructions was highest in CALABARZON

CALABARZON ranked first in terms of total number of constructions, registering 39,741 constructions or 24.4 percent share to the total number of constructions during the year. Completing the top three regions with the highest number of constructions were Central Visayas with 21,216 constructions (13.0%) and Central Luzon with 18,638 constructions (11.5%). (Figure 2 and Table 2)

Value of Constructions

1. Total value of constructions increased in 2021

In 2021, the total value of constructions amounted to PhP 398.93 billion, indicating an increase of 44.6 percent from the PhP 275.81 billion value of constructions recorded in 2020. (Tables A and 1)

2. Residential-type had the highest value of constructions

Residential building constructions valued at PhP 211.66 billion accounted for 53.1 percent of the total value of constructions in 2021. This indicates an expansion of 61.5 percent from the PhP 131.08 billion construction value recorded in 2020. Among residential constructions, single house had the highest value of constructions at PhP 124.74 billion (58.9%).

Meanwhile, the construction value of non-residential buildings amounted to PhP 155.70 billion or 39.0 percent of the total construction value during the year. This reflects a 24.6 percent increase from the PhP 124.96 billion value of constructions reported in the previous year. Among non-residential constructions, commercial buildings registered the highest value of constructions at PhP 64.04 billion (41.1%). (Figure 3, and Tables A and 1)

The construction value of addition to, and alteration and repair of existing structures were recorded at PhP 4.25 billion (1.1%) and PhP 27.32 billion (6.8%), respectively. Both types of construction recorded increases in their respective values compared with their previous year’s annual rates of 41.8 percent for addition to existing structures and 62.9 percent for alteration and repair. (Tables A and 1)

3. Top three regions collectively contributed more than half to the total value of constructions

The combined shares of the top three regions in terms of value of constructions amounted to PhP 234.08 billion (58.7%). These regions were:

1. National Capital Region, PhP 104.75 billion (26.3%);

2. CALABARZON, PhP 79.88 billion (20.0%); and

3. Central Luzon, PhP 49.45 billion (12.4%). (Figure 4 and Table 2)

Floor Area

1. Reported total floor area of constructions increased by 32.0 percent in 2021

The reported total floor area of constructions in 2021 was recorded at 32.99 million square meters. This translates to an annual increase of 32.0 percent compared with the -39.9 percent decline in 2020. (Tables A and 1)

2. Residential-type comprised more than half of the total floor area of constructions

Residential buildings accounted for 18.87 million square meters or 57.2 percent of the total floor area of constructions in 2021, which translates to an annual rate of 52.2 percent.

On the other hand, non-residential constructions recorded 13.68 million square meters or 41.5 percent of the total floor area of constructions during the year. This indicates an annual increase of 11.4 percent compared with the previous year’s floor area of 12.29 million square meters. (Tables A and 1)

Average Cost per Square Meter

1. Average cost of construction increased

The total average cost per square meter of construction in 2021 amounted to PhP 11,223.93. This translates to an annual increase of 8.5 percent from the PhP 10,347.83 average cost per square meter reported in 2020. (Table 1)

2. Non-residential-type had the highest average cost of constructions

Among types of construction, non-residential reported the highest average cost per square meter at PhP 11,280.80 during the year. This was followed by residential-type of constructions with PhP 11,213.83 per square meter, and addition to existing structures with PhP 9,861.35 per square meter. (Table 1)

3. Residential condominiums were the most expensive among types of residential constructions

Among residential constructions, residential condominiums posted the highest average cost of PhP 17,207.61 per square meter in 2021. Meanwhile, the lowest average cost of PhP 9,422.14 per square meter was recorded in other types of residential constructions not elsewhere classified. (Figure 5a and Table 1)

4. Industrial-type buildings had the highest cost among non-residential buildings

Among non-residential buildings, industrial-type buildings reported the highest average cost per square meter of PhP 13,999.98 in 2021. On the other hand, agricultural-type constructions continued to register the lowest average cost per square meter of PhP 5,149.01. (Figure 5b and Table 1)

(SGD) DIVINA GRACIA L. DEL PRADO, PhD
(Assistant National Statistician)
Officer-in-Charge, Deputy National Statistician
Sectoral Statistics Office

TECHNICAL NOTES
Construction Statistics from Approved Building Permits

I. Introduction

I.1 Introduction

The Philippine Statistics Authority (PSA) serves as the central statistical authority of the government on primary data collection which includes the consolidation of selected administrative recording systems. Construction statistics from approved building permits is one of the data generated by PSA based on administrative records. It is compiled by PSA from the copies of approved building permits issued by the Local Building Officials (LBOs) of the Local Government Units (LGUs).

However, the approved building permits issued by LBOs is just one of the sources of construction statistics. Other sources of construction statistics are the surveys of construction establishments and enterprises conducted by the PSA, and the administrative-based data from the Department of Public Works and Highways (DPWH) and the Commission on Audit.

This Special Release presents the final annual data on construction statistics from approved building permits for the year 2021. The final annual data includes additional approved building permits collected after the monthly cut-off date, which is 40 days after the reference quarter. Data are presented in monthly, quarterly, and annual statistical tables at the regional and provincial levels by type of construction

I.2 Objectives

Construction statistics from approved building permits aim to provide monthly administrative-based data on building constructions at the municipality level nationwide. Statistics generated are the following:

1. number of units/buildings
2. floor area of the buildings
3. types of construction
4. value of construction

I.3 Historical Background

The collection of approved building permit forms started in 1977 when the then National Census and Statistics Office (NCSO) (now part of the PSA) and the Ministry of Local Government and Community Development entered into an informal agreement in 1976 to implement the provisions of the National Building Code (NBC) and to monitor the building permit forms.

Later, on 11 July 1979, a Memorandum of Agreement (MOA) between the NCSO and the former Ministry of Public Works, Transportation and Communication (MPWTC) (now the DPWH) defined the agencies’ responsibilities in the generation of construction statistics. The NCSO was responsible for the collection, processing, analysis, and dissemination of construction statistics, while MPWTC shouldered the printing of the building permit forms from 1980 onwards.

In 1993, a joint Memorandum Circular was issued by the Department of Interior and Local Government and the DPWH defining the duties and responsibilities of the municipal/city engineers relative to the implementation of the NBC and in the production of construction statistics from approved building permits. As a result, the printing of the building permits and certificate of completion forms became the responsibility of the LBOs.

On 15 July 2005, the DPWH through the National Building Code Development Office (NBCDO) issued Memorandum Circular No. 01 series of 2005 instructing all LBOs to implement the revised Implementing Rules and Regulations (IRR) including the use of the new building permit form.

The building permit form under the old IRR is valid for use by LGUs until today.

I.4. Scope and Coverage

Construction statistics presented in this special release are based on the approved building permits on new constructions, additions, and alterations and repairs of existing residential and non-residential buildings, and other structures, which are proposed to be constructed in different cities/municipalities of the country.

I.5. Geographic Classification

For 2021, the building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2020.

II. Data Collection

II.1. Data Collection

The collection of the approved building permits from the LBOs is done within the first five working days after each reference month by a PSA field staff.

II.2. Sources of Data

Construction statistics are compiled by the PSA from the copies of original application forms of approved building permits as well as from the demolition and fencing permits collected every month by PSA field personnel from the offices of LBOs nationwide.

II.3. Statistics Generated

Construction statistics generated from approved building permits provide monthly data on building construction at the regional and provincial levels. The statistics generated are the following:

1. number of constructions
2. floor area
3. type of construction
4. value of construction

Aside from the preliminary tables posted in the PSA website, the annual, quarterly, and monthly statistical tables at the municipality level by type of construction are available in OpenStat.

II.4. Limitations of Data

Data on building constructions are based on approved applications for construction during the reference period and not on the construction work completed during the reference period.

The completeness of construction data relies on the approved applications filed in the LBOs. Hence, building constructions without approved building permits are not part of the tabulation of data.

III. Concepts and Definitions of Terms

The definition of terms is adopted from the Revised and Updated IRR of the National Building Code.

Building permit is a written authorization granted by the LBO to an applicant allowing him to proceed with the construction of a specific project after plans, specifications, and other pertinent documents have been found to be in conformity with the National Building Code (PD 1096).

Building refers to any independent, free-standing structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend from the foundation to the roof.

Construction refers to all on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities, machineries, and equipment of buildings/structures.

Residential building is a building for which its major parts or more than half of its gross floor area is built for dwelling purposes. This type of building can be of the single type, duplex, apartment and/or accessoria, and residential condominium.

Single house is a complete structure intended for a single family or household, i.e., bungalow, 2-storey house, nipa hut, etc.

Duplex house is a structure intended for two households, with complete living facilities for each; it is a single structure divided into two dwelling units by a wall extending from the floor to the ceiling.

Apartment is a structure, usually of two storeys, made up of independent living quarters, with independent entrances from internal walls and courts.

Accesoria is a one or two-floor structure divided into several dwelling units, each dwelling unit having its own separate entrance from the outside.

Residential condominium is a structure, usually of several storeys, consisting of multiple dwelling units.

Other residential construction consists of school or company staff houses, living quarters for drivers and maids, and guardhouses.

Non-residential building includes commercial, industrial, agricultural,    and institutional buildings.

Commercial buildings refer to office buildings and all buildings which are intended for use primarily in wholesale, retail, and service trades; i.e., stores, hotels, restaurants, banks, disco houses, etc.

Industrial buildings are buildings used to house the production, assembly, and warehousing activities of industrial establishments; i.e., factories, plants, mills, repair shops, machine shops, printing press, storage plants, electric generating plants.

Institutional buildings are buildings which primarily engaged in providing educational instructions and hospital/health care; ports, airports and other government buildings; i.e., schools, museums, libraries, sanitaria, churches, hospitals.

Agricultural buildings are buildings used to house livestock, plants, and agricultural products such as barns, poultry houses, piggeries, stables, greenhouses, and grain mills.

Other non-building constructions include cemetery structures, street furniture, waiting sheds, communication towers, etc.

Addition refers to any new construction which increases the height or area of an existing building/structure.

Repair is a remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

Renovation is any physical change made on structures to increase their value and quality.

Alteration is a construction in a building/structure involving changes in the materials used, partitioning and location/size of openings, structural parts, existing utilities, and equipment but does not increase the overall area thereof.

Conversion is a change in the use or occupancy of structure or any portion thereof, which has different requirements.

Demolitions refer to the systematic dismantling or destruction of a building/structure, in whole or in part.

Street furniture are street structures consisting of monuments, waiting sheds, benches, plant boxes, lampposts, electric poles, and telephone poles.

Floor area of building refers to the sum of the area of each floor of the building measured to the outer surface of the outer walls including the area of lobbies, cellars, elevator shafts, and all communal spaces in multi-dwellings. Areas of balconies are excluded.

Total value of construction refers to the sum of the cost of building, electrical, mechanical, plumbing, and others. The value is derived from the approved building permit and represents the estimated value of the building or structure when completed.

IV. Dissemination of Results and Revision

V.1. Dissemination

Final results of construction statistics are made public in the form of Annual Special Release. The Annual Special Release is a consolidated report of the quarterly preliminary data including data from approved building permit applications which were submitted after the cut-off date of each month. Results are posted seven months after the reference year at the PSA website. The statistical tables are also available in OpenStat.

V.2. Revision

All documents received after the cut-off date, which is 40 days after the reference quarter, are included in the generation of revised results. The revised data of the previous quarter are reported during the release of the preliminary report of the current quarter. Revisions are made for the previous quarters until the annual report is released seven months after the reference year.

V. Citation

Philippine Statistics Authority. (June 2023). Technical Notes on the Construction Statistics from Approved Building Permits. https://psa.gov.ph/technical-notes/buildingpermit

VI. Contact Information

Joyce B. Egsan
(Supervising Statistical Specialist)
Officer-in-Charge
Industry Statistics Division
(632) 8376-2060
non-mfg.staff@psa.gov.ph
isd.staff@psa.gov.ph

For data request, you may contact the:
Knowledge Management and Communications Division
(632) 8462-6600 local 839
info@psa.gov.ph